TPHB$,$ Inc. expects to sell $1\mathrm{.}1$ million barrels of crude oil in November and will hedge its position

with the December futures contract. Today's crude oil spot price is $53\mathrm{.}50$ and the December crude

oil futures price is $54\mathrm{.}27($crude oil futures prices are quoted in dollars per barrel$).$

a$.$ What is the basis today? $-0\mathrm{.}77$

b$.$ If December crude oil futures price is $54\mathrm{.}60$ in November when TPHB closes out its hedge,

what profit$/$loss will TPHB make on its futures position? $$363,000$ loss

c$.$ If the December crude oil futures price is $54\mathrm{.}10$ in November when TPHB closes out its

hedge, what profit$/$loss will TPHB make on its futures position? $$187,000$ profit